This audio is generated automatically. Please let me know if you have any comments.
As The Magnum Ice Cream Company prepares to be spun off from Unilever next month, a chief executive said the owners of Talenti and Klondike would be ideally positioned to compete in a highly competitive industry.
Magnum, which posted sales of $9.3 billion last year, will immediately become the world’s largest company focusing solely on ice cream when it is separated from Unilever on November 10. Most of Magnum’s sales come from the United States, its largest market.
The frozen novelty space, once relegated to a few deep-pocketed ice cream makers, has seen an influx of new players. Major ice cream manufacturers are now going head-to-head with cookie, confectionery and other companies that have brought their brands into the frozen category.
At the same time, ice cream, long considered a comforting snack, has expanded its range to include dozens of better-for-you options that are sugar-free, high in protein, free of probiotics and other healthy properties. Today’s segment is Valued at over $19 billion According to Mintel, in the U.S.
“The options are incredible now,” Lisa Vortsman, U.S. chief marketing and innovation officer for The Magnum Ice Cream Company, said in an interview. “This is probably the most competitive category we’ve seen in the last five years.”
Vortsman said Magnum’s portfolio will allow the company to stand out by appealing to a wide range of consumers. We sell Popsicles for kids and Breyers CarbSmart and Yasso frozen yogurt for those who want to eat healthier.
The company also owns Ben & Jerry’s, Klondike, Talenti and the eponymous Magnum, which primarily targets consumers seeking premium products.
Magnum’s emergence as a standalone company gives management a single focus, allowing the company to prioritize innovation and distribution and further strengthen its supply chain. No longer do their marketing, ingredients, supply chain and innovation demands need to align with the broader business priorities of other Unilever brands, such as Hellmann’s mayonnaise, Ax deodorant or Dove soap.
optional captions
Provided by Unilever
“This is a new frontier, and this focus will allow us to unlock a lot of opportunities for these brands,” Vortsman said. “We have the ability, knowledge and expertise to take fun to another level. We will strive to be more competitive in that space.”
Nearly six years ago, Unilever, which prioritized premium ice cream options to stand out among commoditized mainstream brands, was able to increase the reach of its premium products to about 60%, up 8.3% from 2019.
Magnum plans to continue to focus on premium brands and drive sales growth by positioning its products to be consumed at different meal times throughout the day.
Other such instances include after a workout or in the afternoon when you can substitute a healthy Yasso bar for chips or chocolate. For dinner, you can replace cake, cookies or other desserts with Talenti’s Snickerdoodle Cookie or Italian Tiramisu.
Magnum may eventually decide to make bigger plays in the morning or other times of the day.
“This is something we look at all the time: How can we break through in an authentic way to engage in morning events?” Botzman said. “We have the expertise to continue to evolve that space.”
